In the state of Texas, insurance companies must offer their drivers personal injury protection, which is also known as PIP. This type of insurance provides compensation for certain expenses you may incur as a result of a car accident.
The Francis Firm highly recommends PIP coverage as a way to protect you and your family in the event of an accident.
The requirement for personal injury protection in Texas is for insurance companies to offer at least $2,500 to their policyholders. You may reject the coverage, but your rejection must be in a signed writing to the insurance company. If you do not reject it as such, you will have PIP added to your policy.
You may also purchase more PIP coverage in Texas, if you would like, depending on what your insurance company offers.
Personal Injury Protection (PIP) versus Medpay
To be blunt, DO NOT PURCHASE MEDPAY coverage. Many insurance companies or their agents will offer and even recommend “Medpay” as an alternative to PIP. Medpay works very similar to PIP when filing a claim, but allows the insurance company to subrogate for Medpay payments.
This means that although your insurance company will pay certain medical expenses arising from your collision, they will later demand to be repaid and take that money back from your personal injury settlement with the driver that caused the wreck. An insurance carrier making personal injury protection (PIP) payment, however, has NO right of subrogation.
This means you do not need to pay your insurance company back when you settle your claim with the negligent driver. Therefore, your total recovery when you have PIP coverage is substantially greater than Medpay. Check your policy and if you have Medpay protection, change it to PIP today.
What Does Personal Injury Protection in Texas Include?
PIP Insurance in Texas covers 100% of the cost of all medical expenses related to your automobile accident, up to the policy limit. Medical expenses may include surgeries, x-rays, hospital stays, diagnostic testing, and more. Your treating physicians will likely need to show the insurance company proof that your injuries resulted from your car accident.
If you have a job at the time of your accident, PIP insurance in Texas may pay for 80% of your lost income. You will need to provide proof of your income. You’ll also need to show that your lost income is a result of the injuries from your accident.
If you did not have a job, PIP may cover the cost of getting a substitute to perform the household duties you managed that you no longer can.
PIP can also cover funeral expenses.
Don't forget: PIP insurance in Texas only pays up to the policy limit. This means that if your expenses exceed $2,500, and you only purchased the minimum amount offered, you may need to find another way to cover the rest of your costs. It is, therefore, a good idea to purchase a higher coverage limit for your PIP insurance in Texas.
Is PIP Insurance in Texas Mandatory?
The insurance company must offer PIP. But, you may decline it, as noted above, in a signed writing. If you do not decline, it will become an automatic part of your policy.
The reason why PIP may be waived is that comprehensive health insurance may cover many of the expenses that are meant to be covered by PIP.
If you have health insurance that would cover your medical costs in case you were injured in a car accident, you may not need PIP coverage. However, PIP does cover lost wages and funeral expenses, which your health insurance won't.
How PIP works and what are your rights with regards to claims when health insurance is also available can be complicated legal questions. Be sure to have an experienced attorney review your claim, your policy and help ensure you get the maximum recovery.
Contact an Experienced Southlake, Texas Personal Injury Lawyer
If you have been in a car accident, or have any questions about personal injury protection in Texas and what it means for you, contact our office. We can help you understand your insurance coverage. If you are considering making a claim after your accident, please give us a call today.
We have experience representing auto accident victims and do everything we can to get you the compensation they deserve.